The Creation of the Integrated Natural Gas Market in the Baltic Region and its Legal Implications

Abstract A common natural gas market in the Baltic region, which is in operation since 1 January 2020, means a single entry–exit tariff system for the natural gas transmission among Finland, Estonia, Latvia, and a common Latvian–Estonian balancing zone. Finland joined the market with a separate balancing zone, certain rules, contracts, invoices and billing, with a decision for full integration to be taken not earlier than in 2022. Lithuania is not currently the common market participant, because it is not ready to join it with such revenue splitting conditions as Finland, Estonia and Latvia. But still common entry–exit tariff zone countries are actively working to find a viable solution for market expansion. Lithuania and other neighbouring Member States of the European Union (hereinafter – the EU), first and foremost, Poland, are welcome to join. The creation of an integrated regional natural gas market in the Baltics in the long term will stimulate the interest of traders in the region, strengthen security of supply and improve market liquidity. Increased market competition, predictable prices in the long term, transparent tariffs, digital communication and customer-oriented business strategies are just a small part of benefits that will inevitably develop with time.

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Natural gas market expansion and delivery infrastructure costs

Resources and Energy ◽

10.1016/0165-0572(91)90020-4 ◽

1991 ◽

Vol 13 (1) ◽

pp. 57-94 ◽

Cited By ~ 4

Author(s):

Jean-Michel Guldmann ◽

Donald A. Hanson

Keyword(s):

Natural Gas ◽

Natural Gas Market ◽

Market Expansion ◽

Gas Market

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New conditions of competition in the European gas market

Public Administration ◽

10.22394/2070-8378-2020-22-5-84-92 ◽

2020 ◽

Vol 22 (5) ◽

pp. 84-92

Author(s):

PETER ILIEV PETROV ◽

Keyword(s):

Natural Gas ◽

Liquefied Natural Gas ◽

The European Union ◽

Practical Application ◽

Gas Industry ◽

Natural Gas Market ◽

Gas Market ◽

The Impact ◽

Different Parts

This article aims to discuss the process of liberalization of the natural gas market in the European Union (EU). The purpose of this research is to show the fundamental characteristics of the gas industry, the process of reconstruction of the European gas market, taking into account the ongoing changes in the context of geopolitical, ecological, and technological determinants of the international and European energy and gas sector. The article describes the structure of the modern European natural gas market, compares the competitiveness of gas transportation methods through trunk pipelines and gas tankers transporting liquefied natural gas. The article examines the impact of the increase in the supply of liquefied natural gas on the situation with the turnover of gas trade in the European market, in particular, how it affects the delivery of hydrocarbons and the growth in the scale of exchange trading. The article examines the Groningen model, which influences the development of gas exchange trading and natural gas trading through long-term contracts. The evolution of the European policy in the field of natural gas, the established strictly regulated version of the “well-functioning” gas market, remains as one too political and unstable experiment. The importance of natural gas changes all the time, depending on economics, the security of deliveries, and sustainability. Furthermore, the focus on that importance and its practical application vary in different parts of Europe. The conclusion is made that a “well-functioning” gas market is characterized by the presence of a large number of suppliers, and competition leads to a noticeable decrease in prices for natural gas. However, in the current situation, the demand for gas turns out to be unstable, and difficult conditions for pipeline supplies are emerging for traditional suppliers. In the long term, the “well- functioning” gas market scheme will remain highly politicized and unstable, with increased competition in supply and a downward trend in gas prices. Thus, the European gas market is transforming towards the formation of a “buyer’s market”.

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The Short and Long Term Impact of Europe�s Natural Gas Market on Electricity Markets until 2050

The Energy Journal ◽

10.5547/01956574.37.si3.jabr ◽

2016 ◽

Vol 37 (01) ◽

Author(s):

Jan Abrell ◽

Hannes Weigt

Keyword(s):

Natural Gas ◽

Electricity Markets ◽

Natural Gas Market ◽

Short And Long Term ◽

Gas Market ◽

Long Term Impact

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Swing Suppliers and International Natural Gas Market Integration

Energies ◽

10.3390/en13184661 ◽

2020 ◽

Vol 13 (18) ◽

pp. 4661

Author(s):

Sang-Hyun Kim ◽

Yeon-Yi Lim ◽

Dae-Wook Kim ◽

Man-Keun Kim

Keyword(s):

Natural Gas ◽

Market Integration ◽

Supply And Demand ◽

Gas Production ◽

Correction Model ◽

Natural Gas Market ◽

Term Contract ◽

Gas Market

This study explores the international natural gas market integration using the Engle–Granger cointegration and error correction model. Previous studies have suggested that liquefied natural gas (LNG) and oil-linked pricing with a long-term contract have played key roles in gas market integration, especially between European and Asian markets. There is, however, little discussion of the role of the emergence of a swing supplier. A swing supplier, e.g., Qatar or Russia, is flexible to unexpected changes in supply and demand in both European and Asian markets and adapts the gas production/exports swiftly to meet the changes in the markets. Qatar has been a swing supplier since 2005 in the global natural gas market. In 2009, Qatar’s global LNG export share reached above 30% and has remained around 25% since then. Empirical results indirectly support that the emergence of a swing supplier may tighten market integration between Europe and Asia. The swing supplier may have accelerated the degree of market integration as well, particularly after 2009.

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Finding optimal route in the Romanian natural gas network

Proceedings of the International Conference on Business Excellence ◽

10.1515/picbe-2017-0014 ◽

2017 ◽

Vol 11 (1) ◽

pp. 131-137

Author(s):

Răzvan Rădulescu ◽

Cătălina Nedelcu

Keyword(s):

Natural Gas ◽

Energy Resource ◽

Market Liquidity ◽

Complex Nature ◽

Demand And Supply ◽

Natural Gas Market ◽

Gas System ◽

System Operator ◽

Gas Market ◽

Natural Gas System

Abstract The Romanian natural gas market is still in its infancy regarding the manners in which the demand and supply match. We are frequently talking about market liquidity or about its dynamic behavior, without considering the monthly losses of the national natural gas system operator that derive from the very lack of matching the supply and demand. The present article proposes a method of overlaying the two in a manner that is feasible for the Romanian natural gas market of 2017, a method that will encapsulate the usage of OBAs (operational balancing agreements) in correlation with a model of allocating the demand and supply as a restricted all-pairs shortest path problem. Based on authors experience, five main variables will be examined: point-of-entry (location and time), volume, time and location of delivery, as well as other sets of data that are particular to this sector. This article will tackle the area of usability of OBAs between suppliers and the degrees of sustainability that such a model offers for clients, therefore the resilience of the system will be analyzed through an optimized transfer of information and accessibility to assets. Due to the complex nature of demand in energy markets and the different requirements set by clients, in which an energy resource can be requested by different sets of users, we will conceive a model that can be applied for natural gas, but also for electric energy production and industrial clients. The scope of this endeavor is to create a tool that will minimize the monthly losses of the national natural gas system operator, as well as its distributors, by allocating, in a fair and unbiased way, the responsibility of fulfilling the requested demand in a certain time unit.

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TRANSPORT AND GEOGRAPHICAL LOCATION AS A FACTOR OF EASTER EUROPEAN GAS HUBS FORMATION

Bulletin of Taras Shevchenko National University of Kyiv Geography ◽

10.17721/1728-2721.2019.73.13 ◽

2019 ◽

pp. 68-72

Author(s):

M. Yaroshevych

Keyword(s):

Natural Gas ◽

Geographical Location ◽

Gas Storage ◽

Pipeline System ◽

European Economic Area ◽

East European ◽

Natural Gas Market ◽

European Experience ◽

The Creation ◽

Gas Market

The Eastern European gas hub is one of the largest energy projects that can liberalize the natural gas market, integrate the Ukrainian gas transportation system into a European gas pipeline system and ensure the profitability of the country’s underground gas storage facilities. The article considers the geographical position as an important factor in the formation of the East European gas hub. There are analysed the basic parameters of functioning of gas storages in the article. There is also considered the European experience of functioning of gas hubs in the paper. The analysis of functioning of gas hubs of Germany and their connection with gas storage of the country is discovered. In the case of Ukraine, the gas storages of the Western region provides extraordinary manoeuvrability of gas flows, optimization of the operating modes of the energy sector, as well as the creation of necessary operational and strategic gas reserves, which is important in the context of market relations. All these preconditions can serve as a powerful base for the creation of a European-style gas hub in Ukraine. The development of the gas sector in Ukraine has a priority in the context of the implementation of Ukraine’s European integration plans in the economic sphere and is determined not only by the geographical location but also by the technological integration of the gas transportation infrastructure in the Middle East European economic area over the past decades. The entry of the Ukrainian natural gas market into the European gas market system will contribute to: enhancement of Ukraine’s energy security; improving the quality and level of relations between Ukraine and the EU countries in cooperation on the gas markets of Central and Eastern Europe; creating a favourable investment climate for the further development of the gas transmission system. Taking into account the European experience, it can be argued that gas storages of Western part of Ukraine, from the transport and logistics point of view, create a powerful base for the formation and further operation of the East European gas hub.

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